Won Strengthens Against Dollar Amid SK hynix Listing and Easing Rebalancing
South Korea's currency, the won, has experienced a sharp rebound in recent weeks, reversing fears that it would approach 1,600 to the U.S. dollar. The won now stands at 1,418.4 per dollar, down nearly 140 won from an intraday level of 1,555.8 on July 2.
The turnaround is attributed to increased expectations of dollar supply associated with SK hynix's U.S. depositary receipt listing, as well as easing foreign investor portfolio rebalancing and strong semiconductor exports.
SK hynix raised approximately $26.5 billion through its listing on July 10, prompting speculation that some of the proceeds would flow into South Korea and be converted into won.
Dollar sales by South Korean exporters have also contributed to the shift in supply and demand in the foreign exchange market.